In the face of intensifying suppression of the cryptocurrency industry by the Chinese government, a state-level industrial investment fund “CCTV Financial Media Industry Investment Fund” was announced on the 26th in Shanghai with a total size of 10 billion yuan to invest in 5G, AI, Blockchain and other cutting-edge technologies in order to promote the development of my country’s radio and television cultural industry.
China Establishes 10 Billion Yuan CCTV Media Fund Amid Cryptocurrency Suppression
The Chinese government has recently intensified its suppression of the cryptocurrency industry, but it is also actively pursuing opportunities to embrace blockchain technology. On the 26th of this month, they established the state-level industrial investment fund “CCTV Financial Media Industry Investment Fund”, with a total size of 10 billion yuan, mainly investing in 5G, AI, Blockchain and other cutting-edge technology applications.
The fund was jointly initiated and established by 26 companies including China International Television Corporation, China Telecom, and China Cultural Industry Investment Fund. According to Shen Haixiong, deputy director of the Central Propaganda Department, the fund was an innovative measure to thoroughly implement the spirit of President Xi Jinping’s important instructions to promote media integration and development.
At the same time, Xi Jinping himself praised blockchain, emphasizing that it is necessary to “use blockchain as an important breakthrough for independent innovation of core technologies, and accelerate the development of blockchain technology and industrial innovation.” However, following the announcement of the fund, the People’s Bank of China released an announcement stating that virtual currency does not have the same legal status as legal tender, and virtual currency-related business activities are illegal financial activities.
In response, a number of large companies that provide related services have suspended virtual currency registration. Huobi, OKEX, and Binance suspended Chinese user registration, while Ant Chain, a subsidiary of Ant Group, even stated on WeChat that it “resolutely opposes all forms of blockchain digital collection hype”.
Contrary to cryptocurrencies, the People’s Republic of China is open to exploring the merits of blockchain. President Xi Jinping had described it as an “important breakthrough in independent innovation of core technologies”, and had also allowed the usage of central bank digital currency (CBDC) to be used as a means of payment during the Spring Festival.
Apart from blockchain technology and CBDC, the Chinese government has also been actively exploring ways to further develop cryptocurrency technology. As of October 2022, cumulative e-CNY transactions had crossed 100 billion yuan ($14 billion). Despite the crackdown on cryptocurrency, China continues to embrace blockchain technology, and the newly-formed National Blockchain Technology Innovation Centre will attempt to advance the financial network of the most populous country by implementing the use cases of blockchain technology.